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It's not perfect, but I believe Coinbase uses a combination of cold (offline) storage for most of its coins and insurance for the rest. Also, as you probably al
by tony101 6y ago
It's not perfect, but I believe Coinbase uses a combination of cold (offline) storage for most of its coins and insurance for the rest. Also, as you probably already know, people should not hold large sums on exchanges if they can use secure their own keys (and wallets) instead.
> "Coinbase prioritizes the security of our customer's digital currency through a combination of online “hot storage” and offline “cold” storage. Coinbase maintains 98% or more of customer digital currency in cold storage, with the remainder in secure hot servers as necessary to serve the liquidity needs of our customers. All digital currency that Coinbase holds in its online hot storage is insured. If Coinbase were to suffer a breach of its online hot storage, the insurance policy would pay out to cover any customer funds lost as a result."
https://help.coinbase.com/en/coinbase/other-topics/legal-policies/how-is-coinbase-insured https://help.coinbase.com/en/coinbase/other-topics/legal-pol...
- kevindeasis 6y agoWow, that's a fun fact, there is an insurance. That's pretty cool, I wonder how much insurance are for these companies and brokerages
- fy20 6y agoI'd imagine with SV money and SV knowledge building a secure exchange, with proper cold wallets and processes in place to secure them and manage access, is not that difficult. I get the impression that a lot of exchanges are (or were in the early days) built by 'enthusiasts' who know just enough tech to be dangerous.
- tradertef 6y agoYou are assuming cold storage can not be "hacked" or "stolen". It is much more difficult at Coinbase scale but such an event would have drastic impact on crypto markets. Coinbase is too big to fail :)
- tony101 6y agoI'm not assuming that. I said "it's not perfect" and simply listed the security measures that I am aware of :)